India is spearheading the electric vehicle (EV) revolution in emerging Asia, driven by substantial investments and rapid growth in the electric two- and three-wheeler markets. A report titled Powering an Affordable EV Revolution in Emerging Asia emphasizes the region's requirement for $1.3 trillion in capital by 2030 to enhance electric mobility and mitigate emissions.

In 2023, India became the largest consumer of electric three-wheelers, selling 580,000 units—60% of global sales and marking a 65% year-over-year increase. The country also ranks second globally in e-scooter sales, with 880,000 units sold, a 40% rise from the previous year.

Private investment and supportive policies, such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme, have been pivotal in this transition. However, ongoing investment in battery swapping infrastructure and charging stations is crucial to address challenges like high upfront costs and range anxiety. The report projects that India could achieve 40-50% electrification in the three-wheeler sector by 2027.

The shift from internal combustion engine (ICE) vehicles to electric models offers significant economic and environmental advantages. For frequent commercial users, EVs can enhance income by 20%, while contributing to a quieter, more comfortable ride. Moreover, electrifying the three-wheeler segment could reduce CO2 emissions by 1.65 million tonnes over the lifecycle of 100,000 vehicles.

To sustain this momentum, the report highlights the importance of scaling manufacturing capacities and developing innovative financing models. It calls for private capital markets to support low-income consumers and build a robust EV ecosystem. With increased infrastructure investments, India and other emerging markets are set to lead the next phase of global mobility transformation.